Japanese cryptocurrency exchange DMM Bitcoin has announced that it will cease all efforts to relaunch its trading platform following a major hack in May 2023. The exchange will instead sell its assets to SBI Group-owned trading company SBI VC Trade, with the sale expected to be completed by March 2025.

DMM Bitcoin’s Decision to Shut Down

According to a recent statement, SBI VC Trade has reached an agreement with DMM Bitcoin to acquire all of its assets. The specific date of transfer will be disclosed in an upcoming announcement. As part of the acquisition, SBI VC Trade will expand its offering by introducing 14 cryptocurrency trading pairs currently available on DMM Bitcoin.

Impact on Users

The expansion is planned to be completed before the transfer of customer accounts and assets, ensuring a seamless transition for DMM Bitcoin’s users. This move is somewhat unexpected, considering that DMM Bitcoin had initiated recovery efforts and promised to make all users whole after the May 30 incident.

The Hack and Recovery Efforts

Over 4,500 Bitcoin, valued at approximately $308 million at the time, was drained from one of the exchange’s wallets, making it the second largest hack in Japan. Despite securing a 5 billion yen loan to aid in its recovery efforts, DMM Bitcoin failed to recover the stolen assets.

Failed Recovery Efforts

In June, the exchange had assured customers and regulators that it would raise an additional 50 billion yen via its “group of companies” and subordinated loans. However, all efforts to recover the stolen assets have failed, and the attackers, suspected to be the notorious Lazarus Group, were seen laundering a portion of the stolen funds via illicit activities.

Recent Trends in Asian Exchanges

DMM Bitcoin becomes the latest Asian exchange to wind down its operations in 2024. Other exchanges, such as WazirX and Fairdesk, have also halted their operations due to regulatory challenges and hacks. In October, it was reported that over a dozen South Korean crypto exchanges had shut down in 2024 after failing to comply with local regulations.

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